31 Aug 2023
This is the biggest-ever quarterly profit for a bank in the second quarter as a result of its emergency takeover of Credit Suisse, and confirmed that it would fully integrate the local business of its former rival by next year. Key takeaways:
- UBS said the result primarily reflected $28.93 billion in negative goodwill on the Credit Suisse acquisition (i.e this huge profit is due to a huge one-off gain that reflects how the acquisition costs were far below Credit Suisse's value). Underlying profit before tax, which excludes negative goodwill, integration-related expenses and acquisition costs, came in at $1.1 billion
- The accounting gain for the quarter eclipses JPMorgan Chase & Co.’s $14.3 billion profit in the first quarter of 2021, the modern record for US and European lenders;
- Analysts had projected a net profit of $12.8 billion for the three months to the end of June, according to a Reuters poll.
Source: Bloomberg, CNBC
Source illustration: Sonntagzeitung / Melk Thalmann
